Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 1)

When a company buys supplies for cash, what journal entry should be made?

Debit Supplies, Credit Cash

Debit Cash, Credit Supplies

Debit Supplies Expense, Credit Cash

Debit Cash, Credit Supplies Expense

Purchasing supplies increases the asset 'Supplies' and decreases the asset 'Cash'.